New agreement secures energy supply for Westfjords region in Iceland

A new agreement ensures reliable energy for the Westfjords region over the next four years. Orkubú Vestfjarða will purchase secure energy from Landsvirkjun, enabling the operation of district heating services. This interim measure is intended to facilitate operations until newly discovered geothermal hot water in Tungudal is fully utilized.

Today, the CEOs of Landsvirkjun and Orkubú Vestfjarða signed the contract which guarantees priority energy supply to sustain the west fjord heating systems. The agreement will replace a previous arrangement for curtailed energy, which allowed Orkubú Vestfjarða access to affordable energy but subjected deliveries to reductions in unfavorable conditions. This has been the situation recently.

In the meantime, Orkubú Vestfjarða has been relying on oil for heating due to the unavailability of curtailable energy. However, there is optimism that the hot water discovered in Tungudal will eventually power the heating systems through a combination of geothermal utilization and heat pumps. Nevertheless, the development of these systems will take several years.

During this interim period, priority energy from Landsvirkjun will ensure heating services operate without the need for oil. Elías Jónatansson, CEO of Orkubú Vestfjarða, stated that the priority energy agreement is an essential step in the energy transition for the Westfjords, complementing the development of heating services in Tungudal.